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ACCENTURE PLC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ACCENTURE PLC has average liquidity. Currently, the Quick Ratio is 1.27 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 13.62% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement

Q2 FY15

Q2 FY14

Net Sales ($mil)

7931.59

7567.48

EBITDA ($mil)

0.0

0.0

EBIT ($mil)

1021.03

951.28

Net Income ($mil)

690.73

671.3

Balance Sheet

Q2 FY15

Q2 FY14

Cash & Equiv. ($mil)

4064.02

3682.98

Total Assets ($mil)

16991.57

16357.21

Total Debt ($mil)

27.22

26.49

Equity ($mil)

5990.85

5272.32

Profitability

Q2 FY15

Q2 FY14

Gross Profit Margin

28.25

29.47

EBITDA Margin

0.0

0.0

Operating Margin

12.87

12.57

Sales Turnover

1.93

1.87

Return on Assets

17.89

17.75

Return on Equity

50.75

55.08

Debt

Q2 FY15

Q2 FY14

Current Ratio

1.47

1.46

Debt/Capital

0.0

0.01

Interest Expense

3.91

4.35

Interest Coverage

261.47

218.79

Share Data

Q2 FY15

Q2 FY14

Shares outstanding (mil)

626.45

633.23

Div / share

0.0

0.0

EPS

1.08

1.03

Book value / share

9.56

8.33

Institutional Own %

n/a

n/a

Avg Daily Volume

2597916.0

2930589.0

Valuation

BUY. ACCENTURE PLC's P/E ratio indicates a discount compared to an average of 25.27 for the IT Services industry and a value on par with the S&P 500 average of 19.41. Conducting a second comparison, its price-to-book ratio of 9.85 indicates a significant premium versus the S&P 500 average of 2.74 and a premium versus the industry average of 9.14. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. The valuation analysis reveals that, ACCENTURE PLC seems to be trading at a discount to investment alternatives within the industry.

Price/Earnings

1

2

3

4

5

premium

discount

Price/Cash Flow

1

2

3

4

5

premium

discount

ACN 19.99

Peers 25.27

ACN 14.11

Peers 19.04

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ACN is trading at a discount to its peers.

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ACN is trading at a significant discount to its peers.

Price/Projected Earnings

1

2

3

4

5

premium

discount

Price toEarnings/Growth

1

2

3

4

5

premium

discount

ACN 18.18

Peers 20.12

ACN 3.94

Peers 2.50

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.